In a country noted for peaceful continuity, 2003 was notable for the passing from power of old-guard politicians. After some public acrimony, Ponatshego Kedikilwe, back-bench parliamentary critic of Pres. Festus Mogae, lost the chairmanship of the ruling Botswana Democratic Party to Vice Pres. Ian Khama. Kenneth Koma, founder of the opposition Botswana National Front in 1965, was ousted from his party in February after refusing to retire as leader. In August Mosadi Seboko, a single mother and former bank manager, was installed as chief of the Balete, becoming the only woman among the country’s eight hereditary paramount chiefs.

The Swiss-based World Economic Forum credited Botswana with the best governance in Africa, even though government budgets had been in deficit for two years running, with a resulting consumer boom. The year was marked by the opening of large new shopping malls in Gaborone and other towns; the malls featured South African chain stores selling goods with price markups exceeding exchange-rate differences. Privatization of state assets was pushed ahead when the national airline, Air Botswana, was offered to international bidders.

Relations with crisis-stricken Zimbabwe continued to be tense. Zimbabwe objected to Botswana’s construction of new border fencing to keep out cattle that might have foot-and-mouth disease. It was also reported that large numbers of Zimbabwean refugees were being deported from Botswana daily. Within Botswana, political controversy was set off when the government granted immunity from International Criminal Court jurisdiction to U.S. citizens at the behest of U.S. Pres. George W. Bush, who visited Gaborone in July.